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The ‘Trade-off’ between Spatial Equity and Economic Efficiency Revisited: Evidence from the US States

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  • Alexiadis, Stilianos
  • Eleftheriou, Konstantinos

Abstract

The principle aims of regional policy can be encapsulated in terms of ‘spatial equity’ and ‘economic efficiency’. Establishing the relation between these two aims is of fundamental importance. Conventionally, however, it is assumed that there is a conflict or a ‘trade-off’ between them. In this paper, a hopeful view, i.e. that the two aims are complementary rather than competitive, is put forward. The validity of this view is examined empirically using data for the US States covering the period 1972-2005. The obtained results map an instructive framework for regional policy where the scope for reducing regional inequalities is not incompatible with improvements in economic efficiency.

Suggested Citation

  • Alexiadis, Stilianos & Eleftheriou, Konstantinos, 2010. "The ‘Trade-off’ between Spatial Equity and Economic Efficiency Revisited: Evidence from the US States," MPRA Paper 24372, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24372
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    References listed on IDEAS

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    6. Rietveld, Piet, 1991. "A note on interregional versus intraregional inequality," Regional Science and Urban Economics, Elsevier, vol. 21(4), pages 627-637, December.
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    Cited by:

    1. Iritié, Jean-Jacques B-G., 2012. "Effets des pôles de compétitivité dans les industries de haute technologie : une analyse d'économie industrielle de l'innovation [Effects of competitiveness clusters in high technology industries: ," MPRA Paper 46686, University Library of Munich, Germany.
    2. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]," MPRA Paper 54429, University Library of Munich, Germany.

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    More about this item

    Keywords

    regional growth; regional policy; spatial equity; trade-off;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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